# Information you need or don't need about web 3 - 4

*Some web 3 words you need to know what they mean...*

By [0x5351](https://paragraph.com/@0x5351abfa9022d1e8117b11ca3556de4164ad34fd) · 2025-08-30

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1.  Layer 2 🧩 Additional layers built on top of the main blockchain, making transactions faster and cheaper. “Side roads that ease Ethereum’s traffic jam.” Example: @arbitrum, @Optimism, @zksync.
    
2.  zk-Rollup (Zero-Knowledge Rollup) 🔒 A solution that bundles multiple transactions into one and records it on the main chain, combining privacy and scalability. “The wizard who knows everything but tells nothing.”
    
3.  MEV (Maximal Extractable Value) 🚨 The extra profit miners or validators can make by reordering transactions. “If the block producer sneaks in their cousin’s transaction first: that’s MEV.”
    
4.  Flash Loan ⚡ Borrowing without collateral, provided it’s repaid within the same block. “If you’re smart enough, one line of code could make you millions… but the risk is huge.”
    
5.  Reentrancy Attack 🐛 A hack where someone repeatedly re-enters a smart contract to drain funds. “Leave the door open, and keep going back inside to steal money!”
    
6.  Tokenomics 📊 The economic model of a token: supply-demand balance, distribution, vesting periods, etc. “The hidden economics class behind a coin.”
    
7.  Liquidity Pool (LP) 💧 A pool where users lock tokens to provide liquidity for swaps. “Like an exchange vault: you put tokens in, trades happen, and you earn fees.”
    
8.  Slippage 📉 The difference between the expected price and the executed price. Hurts especially in low liquidity. “The risk of moving the price with a single click in a low-volume coin.”
    
9.  Wrapped Token (e.g., WBTC) 🎁 A tokenized version of an asset on another chain. The original is locked, and you use its wrapped copy elsewhere. “The indirect, packaged way of using BTC on Ethereum.”
    
10.  Impermanent Loss 📉 When a liquidity provider ends up with less value due to price fluctuations of the pooled tokens. “If your coins don’t stay put, providing liquidity could turn into a loss.”

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*Originally published on [0x5351](https://paragraph.com/@0x5351abfa9022d1e8117b11ca3556de4164ad34fd/information-you-need-or-dont-need-about-web-3-4)*
